Money talks: the current state of software play in hospitality

Cloud remains a key aspect of the hotel and hospitality industry interest in software. Indeed, there is now a very strong appetite for cloud deployment beyond the typical “point solutions”, says Calum McIndoe of Infor Hospitality.

Whereas – only a couple of years ago – hotels would put a system such as PMS in the cloud, whilst other core applications remained on premise, many hotels now look to have everything above the properties. This even extends to financials, typically an area that hotels are most nervous about.

However this is no free for all. The driver remains identifying and implementing solutions that add value: either increasing revenue or reducing costs. Typically these applications include:

• Revenue Management: selling the right room at the right price to the right person remains the core objective of much technology implementation and is growing ever more sophisticated as hotels integrate different levels of demand throughout the year.
• Human Capital Management: HR systems are now incredibly sophisticated, including behavioral aspects. This is particularly relevant in hospitality as it often suffers high staff turnover. Using scientific methods, businesses can ensure they are employing the right people for the job in the first instance, drastically increasing retention. This instantly affects bottom line.

The cloud basis is also enabling hotels to get more from their applications. For example cloud-based accounting systems can easily add specific HR or BI components and comprehensive ad hoc reporting. One specific area that many hotels are looking at is substantially increasing the accuracy and speed of forecasting. The goal is fluid, rolling forecasting that evolves as the business moves. However all of the above show a careful, tactical implementation of technology aligned to a clear ROI.

Lastly, sustainability remains a key platform of a lot of technology investment. Reduced energy use is still a key component of a lot of cost saving programmes, driving interest in asset management applications. However, again it is clear that it is the commercial imperative driving this investment rather than any associated benefit of being seen to be green.